The militant group holding three Indians, three Kenyans and an Egyptian hostage in Iraq on Thursday said it will release all seven if the Kuwaiti transport company they are employed with agrees to withdraw from Iraq.

According to a video shown on Al-Arabiya television, the militants said they are willing to drop all other demands.

The video showed the seven men sitting on the ground while a voice read a statement. The group calls itself 'The Holders of the Black Banners'.

In a statement, KGL, the employer of the seven truckers, said it is willing wind up operation in the country.

The three Indian hostages are -- Antaryami, Tilak Raj and Sukhdev Singh.